Congress will have to 'kiss the ring' of Trump the 'godfather,' strategist says

Bonds die, dollar rallies under Trump: Boris Schlossberg

Donald Trump is an "amazing chameleon" who will set aside talk about ripping up free trade deals and go full steam ahead on jump-starting economic growth, BK Asset Management's Boris Schlossberg told CNBC on Wednesday.

Trump's early morning victory speech was "masterful political theater," the foreign exchange strategist said on "Squawk Box."

Using a stock analogy, Schlossberg said: "[Trump] couldn't care less about profit. He only cares about sales at this point. If he goes across the aisle and works with Bernie Sanders, his approval rating is going to go into the 80s."

The House and Senate, which remained in Republican hands after Tuesday's election, won't be able to say no to Trump, Schlossberg said. The billionaire is the new "godfather," and they're going to have to "kiss his ring," he said.

In winning the White House, Trump basically "emasculated" House Speaker Paul Ryan, Schlossberg argued.

He predicted that Trump's promise to spend on infrastructure is going to "juice the GDP to maybe 3 to 4 percent."

"I think bonds die. Dollar rallies. Stocks rally," Schlossberg said. "Trump is the master destroyer of credit, and I have to think you have to bet on that."

Schlossberg said there's a caveat to his argument: "Here's the only danger point here, if he gets goaded by ISIS."

Meanwhile, Bob Doll, chief equity strategist at Nuveen Asset Management, in the same "Squawk Box" interview, questioned which Trump is going to show up as president.

"The pro-growth one, which I think the [stock] market will love, or the anti, shut the borders [one]," Doll asked. "We might not have the best trade deals in the world. But we have benefited from every trade deal that's been signed," he argued.

If the stock market dips, Doll said he's buying.

What will Trump do with the Fed?

In a later interview on CNBC, Tim Freeman, partner at institutional broker-dealer Elevation Securities, said he wants to know what Trump's plans are for the Federal Reserve.

"The biggest thing we need to focus on is, in my opinion, what is he going to do about the Fed. He's been very, very down on the Fed and policy," Freeman said.

Freeman speculated whether Fed Chair Janet Yellen might resign before her four-year term ends in 2018. Trump had said during the campaign that he would be inclined to not reappoint Yellen.

Ultra-low interest rates and other accommodative monetary policies since the 2008 financial crisis have pushed investors to search for higher returns in traditionally riskier assets such as stocks, Freeman said.

"They have to put their cash someplace," he said. "I could see volatility being pumped today, nearer term. Within a week, the emotion will go."

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